Consumer confidence has seen consistent growth in recent months – the latest reports from the Federal Reserve reveal that consumer credit has increased for the fifth month in a row, signifying strengthening trust in the U.S. economy.
According to Reuters, Americans increasing their outstanding credit (via car loans, credit cards, etc.) by $7.62 billion from January to February, which surpassed economists' projections by nearly $3 billion.
"This is consistent with the strength seen in auto sales over the past few months, as auto-related loans make up a large portion of nonrevolving debt," economist Theresa Chen of New York's Barclays Capital said to the news source. "The persistent increase in headline consumer credit is a positive development, consistent with the broader economic recovery."
The news provider also reports that while car sales remain on the rise, buyers are still able to make their credit card payments on time. This comes as good news for consumers with a bad credit auto loan, as the improvement in the country's financial standing is a comforting sign that they will be able to afford monthly payments without a problem.